Drill, Drill, Drill = Jobs, Jobs, Jobs in Michigan

From my editorial in yesterday's Detroit Free Press: Amid all of the bad economic news nationally, there is an economic bright spot: One U.S. state is booming like never before. In North Dakota, the unemployment rate was an astoundingly low 3.3% in July; it hasn’t been that low at the national level since 1953. At a time when other states are facing declining revenues and budget deficits, North Dakota’s tax revenues are soaring, and it has a $1-billion surplus. In May, the state legislature passed a bill to reduce income tax rates for individuals.Michigan could experience a similar economic boom by producing more of its own oil and natural gas. The Michigan Basin is believed to hold more than 282 million barrels of oil, 2 trillion cubic feet of natural gas, and 83 million barrels of natural gas liquids. These vast energy resources in Michigan are now recoverable using advanced hydraulic fracturing technology. The economic benefits of a time-tested drilling technology can put thousands of Michiganders back to work, generate millions of dollars in government revenues, and improve U.S. energy security.

If you were on the hunt for the next big horizontal oil play in the U.S., where would you be inclined to look? Texas? That makes sense; Texas is the top oil producing state in the country. California? That also makes sense, California has been a top oil producing state for decades. But Illinois? Well, would you believe it has produced 4 billion barrels already, and 4 Tcf (that would be Trillion cubic feet) of natural gas? It's true. And now, there are rumblings of something very significant happening again in the Illinois oil patch-rumblings of a big horizontal oil play.

Canada’s Northwest Territories is appealing to Asian investors to boost oil and natural gas drilling after reaching an agreement with the federal government over control of resources, the region’s leader said.
With an estimated 6.87 billion barrels of potentially recoverable oil resources and 81.1 trillion cubic feet of gas, the territory’s economy stands to gain from rising global energy demand, according to territorial leader Bob McLeod, who has scheduled talks with “about 20” Chinese oil and gas companies next month in Calgary.

Poland is setting the stage to become a rising player in the European natural gas market. Europe has long been reliant on Russia for its supply of natural gas, but domestic discoveries of shale gas—along with strong governmental support for drilling—might soon catapult Poland to the forefront of the energy landscape.